The Power of Stay Interviews
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1 May 7-9, 2017 Disney s Yacht & Beach Club Resorts, Florida The Power of Stay Interviews Dick Finnegan 2
2 Finnegan Bio Recovering HR director solved turnover for Siberian banks, African gold mines, Chinese multi-national corporations and the CIA Author, Rethinking Retention in Good Times and Bad, excerpted by BusinessWeek; fresh thinking for solving the turnover problem in any economy Author, The Power of Stay Interviews for Engagement & Retention, topselling SHRM-published book in history Author, The Stay Interview, published in 20 languages + audio book Author, HR s Greatest Challenge, distributed free to top global HR executives 2
3 Today s Agenda Stay Interviews: What & Why? Trust Building Essentials Stay Interview Process & Practice Stay Action Plan & Retention Forecast What Makes People Happy? 3
4 The Power of Stay Interviews From The Stay Interview You All Read A Stay Interview is a structured discussion a leader conducts with each individual employee to learn the specific actions she must take to strengthen that employee s engagement and retention with the organization Stay Interviews Bring information that can be used today Focus on individual employees including top performers Put managers in the solution seat 4
5 U.S. Voluntary Quit Percentages, Post-Recession U.S. Bureau of Labor Statistics Young U.S. workers will hold jobs by age
6 Report Turnover in Dollar$ Actual client turnover costs by job: Physician $225,808 Software engineer.$131,000 Call center representative $29,447 Truck loader/unloader $4,955 How Much Does It Cost to Lose the Best Person on Your Team? 6
7 Engagement Stuck per Gallup/Deloitte 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ENGAGED NOT ENGAGED ACTIVELY DISENGAGED US spends $1.53 billion each year to improve engagement
8 How Much More Do Engaged Employees Produce? Gallup: 22% more profitability/lower turnover (TO)/higher earnings per share (EPS) GPTW Institute: 20% more productivity/lower TO/higher EPS Hewitt: % engaged correlates with higher shareholder returns (S/H) Kenexa: double S/H returns WorkUSA/Watson Wyatt: 26% more revenue per employee 8
9 Are Your Retention Efforts Driven by Accountabilities Business Accountabilities are driven by executives from the top like sales, service, quality, & safety Programs Retention Programs are driven from the side like town hall meetings, employee appreciation week, newsletters 86% of the time 9
10 Supervisor s Impact on Engagement & Retention If you have a turnover problem, look first to your managers Gallup Employees stay for managers first and co-workers second salary.com Employees levels of engagement higher when their supervisors had higher levels of engagement DDI When employees stay, it is because of their immediate managers National Education Association Employees who stay primarily for their supervisors stay longer, perform better, and are more satisfied with their pay TalentKeepers 10
11 The Real Power of Supervision Kenexa interviewed 1,000 recently-quit employees and asked about pay, benefits, development, advancement and relationships with supervisors and found supervisor relationships influenced all other opinions, concluding Offering a higher salary or developmental/advancement opportunity may not be enough to retain employees 11
12 The Incredible Power of Accountability & First-Line Retention Goals Strategy A Group of hospitals solved nurse turnover with onsite child care & flexible scheduling Strategy B Outlier hospital assigned retention goals to managers and reported progress monthly One Year Later: A turnover % identical, B down 41%, saved millions of $s 1
13 Which Side Matters More? Pay, benefits, bonuses, Employee appreciation week, Employee of the month, Brown bag lunches, Leaderboard winners, career ladders, employee surveys, Exit surveys, onboarding, Training monitoring sessions, Team meetings, all-hands Meetings and almost everything else 13
14 Which Side Matters More? Pay, benefits, bonuses, Employee appreciation week, Employee of the month, Brown bag lunches, Leaderboard winners, career Ladders, employee surveys, Exit surveys, onboarding, Training monitoring sessions, Team meetings, all-hands Meetings and almost everything else Employees trust their direct supervisors on all levels throughout your organization 14
15 Supervisors vs Programs Good Programs + Good Supervisors = Retention & Engagement Good Programs + Poor Supervisors = Turnover & Disengagement 15
16 Introducing the Power Of Trust 16
17 Why Was Your Best Boss Your Best Boss? My best boss ever was my best boss because
18 Why Was Your Worst Boss Your Worst Boss? My worst boss ever was my worst boss because
19 The Fortune Top 100 # Baby bonding bucks, 12 weeks paid parental leave, horseshoe pits, Africa volunteering, subsidized massages, 3 wellness centers, bike repair shop, 3 organic meals per day, artisan tea & coffee, 25 free cafeterias and free eyebrow shaping 19
20 Two-thirds of a company s score is based on the results of the Great Place To Work s Trust Index Survey Any company can be a great place to work. Our approach is based on the major findings of 20 years of research that trust between managers and employees is the primary defining characteristic of the very best workplaces. The Great Place to Work Institute 20
21 Building Trust 1-1 Builds Profits 21
22 One Big Lesson Learned It s not what you give them, it s how you treat them and first line supervisors most influence employees relationships with managers, colleagues, and duties Insanity: Doing the same thing over and over again and expecting different results 22
23 Stay Interviews A Stay Interview is a structured discussion a leader conducts with each individual employee to learn the specific actions she must take to strengthen that employee s engagement and retention with the organization Stay Interviews Bring information that can be used today Focus on individual employees including top performers Put managers in the solution seat 23
24 3 Stay Interview Success Stories Novo 1 Call Centers Agent turnover down 20% Florida Hospital Zephyrhills All turnover down 37% Nurse turnover down 70% Burcham Hills Retirement Community Nurse turnover down 70% 100% retention first 180 days 24
25 Stay Interview Process Key Ingredients Conducted by GMs, cascading from the top Separate from Performance Review Repeat at least 1X/yr for all existing employees, 2X /yr for new hires Script opening, questions, probes, closing Create individual Stay Action Plans Top-Selling SHRM-Published Book in History GMs Forecast Retention 25
26 Your Role: Forecast Retention Likely to leave in a 6 months or less May leave in 6 12 months Likely to stay greater than a 1 year Can be changed at any time if new information 26
27 Retention Forecast HeatMap Leader: Rodriguez Perf Rating/ 5 Hi, 1 Lo Green 1+ yrs Yellow 6-12 Months Red 0-6 Months Retention Plan Kim Johnson 4 Provide mentor for Burt Brown 5 Develop skills for possible promotion to Cindy Stone 3 Pleased with current role & circumstance Ralph Jimenez 2 Coaching for performance 27
28 Stay Interview 5 Questions 1.What do you look forward to each day when you commute to work? 2.What are you learning here? Want to learn? 3.Why do you stay here? 4.When is the last time you thought about leaving us? What prompted it? 5.What can I do to make your job better for you? 28
29 Stay Interview Exercise In groups of 3, please practice by choosing one of the following roles: Employee playing yourself Manager asking and probing Observer giving manager feedback on probes Rotate roles as time permits 29
30 How To Build Stay Plans Communication Development New Role/Promotion Pay Recognition Too Much Work 30
31 Subject Probes Solutions Communication What information do you need? How do you like to receive information? In meetings? One-to-one? By ? What are subjects for which you want to provide input? Schedule weekly individual meetings Solicit input for team meeting agendas Commit to communicate specific information more quickly Nominate employee for a specific-topic input group 31
32 Subject Probes Solutions Development If you could learn about one additional topic related to your job, what would that one topic be? Assign a mentor for a specific number of hours each week for a specific period of weeks How do you learn best? By reading? Listening? Observing? Doing? How can I know that our plan is working, that you are learning what we both want you to learn? Ask employee to identify relevant books and websites Recommend internal and/or external courses 32
33 Subject Probes Solutions New Role/Promotion Tell me the perfect job for you Why is that job so appealing to you? What SKILLS do you have that qualify you for that job? What SKILLS would you have to build? Ask employee to meet with/shadow incumbent in desired job and report back on 5 most important SKILLS Give employee specific feedback on her skill levels and SKILLS needed Build plan to develop SKILLS via mentoring, coursework, and feedback 33
34 Subject Probes Solutions Pay How much money do you think you should be making? What actions do you see that you can take to increase your pay? What SKILLS can you build that would make you more valuable to our company? Check employee s pay against same-performing peers to verify it is right Design development plan that is targeted toward a different role for more pay if employee has talent to qualify Ensure employee knows all incentive opportunities that might provide shorter-term rewards 34
35 Subject Probes Solutions Recognition Tell me a time when you should have been recognized but you were not? Commit to lending a sharper eye to identify achievements and recognition opportunities How do you like to be recognized? In public or privately? How does recognition motivate you to perform better? Ask employee to come forward privately to tell you achievements you might overlook or might not be visible Consider employee for monthly or annual achievement awards if performance merits consideration 35
36 Subject Probes Solutions Too Much Work What are the three most important assignments in your job? What can you stop doing that won t be missed? Which assignment gives you the most stress? Address stress first by coaching on SKILLS Eliminate unnecessary assignments Re-assign less important assignments that are lesser fits with employee s SKILLS 36
37 Gallup s 100 Year Commitment Surveying citizens of the world for 100 years to learn what people want more than anything else in their lives. So far the answer is which a. Good health? b. A good job? c. Love and respect from others? d. Money for needs and more? e. Better life for your children? 37
38 Gallup s 100 Year Commitment a. Good health b. A good job c. Love and respect from others d. Money for needs and more e. Better life for your children 38
39 To Obtain Free Online Stay Interview Training Module How to Cost Turnover & Engagement Engagement Correlations to Productivity The Stay Interview Manager Training Game Please Me Include # of Employees 39
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